Sara, About a year ago my hubby and I had the bank pay off a Lowes card. They usually cut the check straight to the credit card company and send along a letter stating that this account should be closed. However we did not want it closed and asked Lowes how to keep it open and they said just call the company and let them know you do not wish for the account to be closed. I am not sure if all banks have you close the card but this is how mine did. I wanted to leave it open so our credit score would not drop.
While a payment arrangement does not affect your credit score, closing down all the accounts does. If you close all your accounts at once, your credit score will take a hit. Do not start making payments unless you are clear about the payment agreement. Talk to the bank again to clarify all your doubts and then start paying. In your case, it seems like the bank is closing the account since they are giving you the details about the payment plan.
Justin, I had mentioned on another post about my interest in transferring a credit card debt to a lower interest card. Recently Sears had upped our interest rates "due to factors beyond their control". This I am asuming is the economy. The Sears accoun t has been open for about a little over a year. I know having alot of open credit card accounts is suppose to effect your score. We have three and if we transfer that will be four. Which is better 1. to leave the account opened and unused (they then could close it for lack of use) or to go ahead and close it? Any information would be great.
Sara, About a year ago my hubby and I had the bank pay off a Lowes card. They usually cut the check straight to the credit card company and send along a letter stating that this account should be closed. However we did not want it closed and asked Lowes how to keep it open and they said just call the company and let them know you do not wish for the account to be closed. I am not sure if all banks have you close the card but this is how mine did. I wanted to leave it open so our credit score would not drop.
Hi Sara,
While a payment arrangement does not affect your credit score, closing down all the accounts does. If you close all your accounts at once, your credit score will take a hit. Do not start making payments unless you are clear about the payment agreement. Talk to the bank again to clarify all your doubts and then start paying. In your case, it seems like the bank is closing the account since they are giving you the details about the payment plan.
Justin, I had mentioned on another post about my interest in transferring a credit card debt to a lower interest card. Recently Sears had upped our interest rates "due to factors beyond their control". This I am asuming is the economy. The Sears accoun t has been open for about a little over a year. I know having alot of open credit card accounts is suppose to effect your score. We have three and if we transfer that will be four. Which is better 1. to leave the account opened and unused (they then could close it for lack of use) or to go ahead and close it? Any information would be great.
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